Sunday, August 19, 2007

[NY Times] A Chinese Century? Maybe It's the Next One

I just read this article from New York Times written by Lester Thurow, who is a professor in MIT Sloan Management School as well as a board of TSMC. He said that China will not catch up with U.S. until 22 century because of the facts he observed as following:

1. The statistics from China government might be incorrect. It is not possible for a 10% growth in overall with a 70% of the economy is based in rural area which is not growing. It means that the economy in cities has to be grow 33%! Also it is not consistent to the numbers collected by Hong Kong.
2. With the economy grows, electric consumption should grow at a positive correlation. But this did not happen in China, compared to the Japan's '70 rising.
3. Suppose China grows 4% after inflation adjustment in this century and United States grows 3%, the per capita GDP will be $40,000 in China versus $650,000 in United States. Simply because that China starts at $1,000 and United States at 43,000.

After all, China is unlikely to surpass the United States in G.D.P. in absolute or relative terms anytime soon, as in Thurow's opinion. What is yours?

[Link to original article from New York Times]

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